SAN JOSE, Calif. - Tessera Technologies Inc. has scrapped further development of its wafer-level optics line for camera modules.
In connection with the cessation of the development of wafer-level optics, in the fourth quarter of 2010 Tessera will recognize a charge of between $3 million and $4 million to write off the net carrying value of certain long-lived fixed assets.
As reported, this effort had been a critical part of Tessera's future growth. “We have decided to discontinue further development of our Wafer-Level Optics for camera modules due to the diminished revenue opportunity for this technology under a license and royalty business model,'' said Henry Nothhaft, Tessera’s chairman and chief executive, in a statement.
''Pursuant to our long-term vision of more product opportunities in our Imaging & Optics business segment, we intend to repurpose resources formerly dedicated to Wafer-Level Optics to high-value, product-based opportunities such as consumer Micro-Optics,” concluded Nothhaft.
Tessera also announced its results for the third quarter ended Sept. 30. Third quarter 2010 total revenues of $82.1 million were up 24 percent compared to the third quarter of 2009. The company’s two business segments, Micro-electronics and Imaging & Optics, were up 22 percent and 42 percent respectively in the third quarter of 2010 as compared to the third quarter of 2009.
Generally accepted accounting principles (GAAP) net income for the third quarter of 2010 was $19.0 million, or $0.38 per diluted share.
“We had record recurring revenue in the third quarter of 2010,” said Nothhaft. “Excluding settlements, we believe our full year 2010 total revenue will be up between 18 percent and 19 percent over full year 2009 total revenue, due to the expected growth in our primary served markets of DRAM and mobile wireless devices.''
Fourth quarter 2010 total revenues are expected to range between $76 million and $79 million, which represents an increase of approximately 35 percent to 40 percent over fourth quarter 2009 total revenues of $56.5 million.